Industry

Dating app Bumble had a rough third quarter, with total paying users down 2 percent from the second quarter. It was the first time the company saw a decline in its user base since going public in February of this year.

According to Reuters, total paying users fell to 2.9 million as the pandemic surge prompted new lockdowns in hard-hit countries. The company says the pandemic surge caused an overall drop in consumer spending on dating apps and in-app purchases. This news spooked investors and sent Bumble’s stock tumbling 9 percent, a 32 percent total decline since its IPO.

The company owns popular dating app Badoo which was hit especially hard due to its popularity in markets affected by the Covid surges. Badoo accounts for about a quarter of the company’s total revenue according to Barron’s.

Dating app conglomerate Match Group has lowered their expected earnings for Q4, according to an earnings call with investors. The company said the adjusted forecast resulted from decreased revenue in Asian markets due to the pandemic. Shares declined 6 percent with the news.

According to Reuters, Match Group adjusted fourth quarter earnings revenue between $810 and $820 million, below analysts’ forecast of $838.5 million per Refinitiv. The company expects revenue for 2021 to be around $3 billion.

In the third quarter, revenue rose 25 percent, but still missed expectations. Match Group added 16.3 million paid users and revenue per person rose 8 percent. Their quarterly earnings came out to $.53 per share, missing the Zacks Consensus Estimate of $.60 per share, and has dropped from earnings of $.55 per share a year ago.

Match Group is taking the dating app experience to the next level by testing a new “metaverse” where users can create avatars that interact with each other over the app.

According to Tech Crunch, news of these plans came during the company’s third quarter earnings call, where despite performing below expectations, executives were upbeat and looking toward the long-term future of its dating apps by harnessing this technology.

Match Group CEO Shar Dubey noted in the call that Hyperconnect, a social discovery platform the company purchased earlier this year, was testing the avatar-based dating experience dubbed “Single Town,” where users interact in real time as they meet in virtual spaces (like a bar) and have live audio conversations. If two users express interest in each other (via their avatars), they can choose to continue their conversations through messaging. Eventually, the company plans to leverage the technology across their dating apps.

The emails at the heart of the case against Match Group and IAC have been revealed, just prior to the trial which is set to begin in November. Former Tinder CEO Greg Blatt was accused by former Tinder employees, including founder Sean Rad, of undervaluing Tinder’s worth to cheat them out of billions of dollars in stock options. 

According to The Daily Mail, emails revealed that Blatt valued the dating app at nearly $12 billion in 2016, more than a year before Match Group valued Tinder at only $3 billion as Sean Rad and other employees were forced to exit the company. Rad and the other plaintiffs who filed the lawsuit claim Blatt purposefully devalued the stock in their negotiations, citing the emails as evidence. 

Match Group owns dating app Tinder, and they along with IAC are the defendants in the lawsuit.

Audio-focused dating app Heart to Heart, created by former TikTok product and operations lead Joshua Ogundu, raised $750,000 in seed money towards its launch goal.

The funding was initiated by Charles Hudson at Precursor Ventures, according to dot.LA. The seed money will go toward research and development of the app, which is expected to launch in beta form for iOS users by the end of the year.

Ogundu first came up with the idea because of audio-based social media platform Clubhouse’s popular speed dating rooms. Seeing an opportunity for audio connection in a dating app, he took to Twitter to find engineers to make Heart to Heart possible. Twitter now offers live audio group chats along with Clubhouse, and demand is still growing. Podcasts have persisted in being widely popular, paving the way for other audio applications.

Scammers stole more than $1.4 million from users of popular dating apps like Tinder, Grindr and Bumble, among others. Dubbed “CryptoRom” by cybersecurity research firm Sophos, the attackers feigned romantic interest with victims to build trust, and then lured them into downloading fake cryptocurrency apps.

According to reports, these scammers used Apple’s Enterprise Development platform to push the fake cryptocurrency apps, which gave the victims a sense that they were legitimate, but in reality, this allowed scammers to bypass the normal app review process. 

The CryptoRom attackers set up fake profiles on dating apps and strike up conversations with users, later moving them to messaging apps. After a time, the subject of cryptocurrency is introduced into the conversation, and the scammer asks the victim to install the fake crypto trading app to make an investment. At first, the victim makes money and is allowed to withdraw from their account, providing a false sense of security. Soon after, they are asked to make a more substantial contribution, and if they do, the scammers not only refuse their withdrawal requests, but blackmail them to invest more and take the money they already paid if they refuse.